La Banque Postale enters the Credit-as-a-Service market
FACTS
- La Banque Postale Financement, the subsidiary dedicated to consumer credit, changes its name to La Banque Postale Consumer Finance (LBPCF).
- The reason for this identity change is a strong strategic evolution and a shift towards Open-banking.
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La Banque Postale Consumer Finance is behind a new white-label API platform, dedicated to FinTech and other financial institutions that want to offer consumer credit to their customers.
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The customer path is entirely digital and integrates various modules with high added value:
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automated fraud risk management,
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relationship entry and customer relationship management,
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use of PSD2 (account access) for credit scoring.
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The platform will thus enable La Banque Postale's partners to grant a credit pre-approval in real time to more than 5 million people, already identified by LBPCF. To make this value proposition, the bank is relying on its strong footprint in the French market, with more than 11 million known customers.
CHALLENGES
- Expand its financing business through open banking: In 2017, La Banque Postale Financement set itself the objective of equipping 50% of its customers with consumer credit by 2023. A difficult objective to achieve, as the bank opened up to credit relatively recently. With the launch of LBPCF Business Solutions, it is opening up a new distribution channel for its loans and immediately targeting France and Europe.
- A shift towards BtoBtoC: with the launch of its eZyness Payments Institution in 2017, La Banque Postale had already begun a shift towards Banking-as-a-Service. At the end of 2019, eZyness had the ambition to record 80% of its turnover out of the La Poste group by 2022. After the PaaS, it is now CaaS' turn to serve this objective.
MARKET PERSPECTIVE
- La Banque Postale is one of the three candidates considering the acquisition of Banque Casino (Floa Bank). From the perspective of this new strategy, this takeover would make a lot of sense for the group, since the Casino subsidiary is one of the pioneers of Credit-as-a-Service and is already using PSD2 to instantly score its customers.
- In this market segment, LBPCF BS will be in head-on competition with Younited Credit, which is already very present in France and Europe.